Negative employee perceptions of performance management are pervasive throughout the public sector. Whether institutional or individual performance management is referred to, issues pertaining to coordination, integration and communication – all related to management functions – seem to be indicative of performance management. The article explores the management challenges in ensuring alignment between individual and institutional performance indicators, as is evident through the case study of the Overstrand Local Municipality. Qualitative research, specifically the case study design, was used and data collected through a document review and unstructured interviews with senior managers. The findings highlight the inability of management to ensure alignment which is apparent from the negative perceptions of employees to both individual and institutional performance management. Recommendations based upon best practice highlight the responsibility of managers in facilitating a performance culture suggesting appropriate performance management through the alignment in planning, organising, leading and control of both individual and institutional performance management.